House votes to halt school bond repayment program

  • Thursday, April 2, 2015 9:14pm
  • News

JUNEAU (AP) — The municipality of Anchorage could be the last community to be reimbursed for new school bonds before a five-year hiatus, but the House speaker hinted this may not yet be a done deal.

Alaska’s House voted Thursday in favor of Senate Bill 64, which would halt the state’s practice of partial repayments on school maintenance and construction bonds for five years, and then reduce the reimbursement rate after that. An effort to make that effective immediately failed when it received just 24 votes, instead of the 27 needed, so the bill won’t become law for 90 days.

As things stand, the state could be on the hook for its share of a nearly $60 million bond package that Anchorage voters will consider Tuesday, according to an aide to Sen. Anna MacKinnon, whose committee sponsored the bill.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

A memo from the Legislature’s Legal Services division said the immediate effective date needed to pass both the House and Senate, and the governor needed to sign the bill before the election to prevent a constitutional issue in backdating the hiatus to avoid paying for the Anchorage bonds.

House Speaker Mike Chenault, R-Nikiski, said lawmakers were working on another possible solution to prevent the state from having to include Anchorage in the bond reimbursement pool before halting the program, but he wouldn’t provide details Thursday afternoon.

The bill passed the Senate last week. Gov. Bill Walker’s spokeswoman had no comment on whether the governor would sign it since it hasn’t reached his desk yet.

Thursday was the second time the House voted on the bill and when it would go into effect. Lawmakers on Wednesday couldn’t get the 27 votes — or two-thirds majority to make it effectively immediately.

Chenault said he thought the legislators working on the bill had the votes to pass the effective date when they said they wanted to proceed with the reconsideration vote Thursday, but that ultimately wasn’t the case.

Mike Abbott, chief operating officer for the Anchorage School District, said Thursday afternoon that the district had just heard about the vote and was still looking at what it would mean for reimbursement of the bond package. Overall, however, Abbott said the school district valued the state’s reimbursements, and was concerned about the hiatus.

The bill was sponsored by the Senate Finance Committee and introduced in March, and proponents have portrayed it as a way to help curb state spending. The state faces a $3.5 billion dollar deficit due to a decline in oil prices, and Rep. Steve Thompson, R-Fairbanks, said that his role in Juneau was to help control spending, not increase it.

But others pointed to the need for school maintenance. Rep. Les Gara, D-Anchorage, said he thought the five-year hiatus could just lead to more projects to pay off when the program is reinstated after five years of neglected maintenance at schools.

The reimbursements don’t occur until the municipality has started making payments, and they are subject to the Legislature appropriating the money for them.

More in News

Foliage surrounds the Soldotna Police Department sign on Tuesday, Aug. 30, 2022, in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna OKs $170,000 for new police camera system

The existing system was purchased only during the last fiscal year, which ended June 30, 2024.

Winter Marshall-Allen of the Homer Organization for More Equitable Relations, Homer Mayor Rachel Lord, and Jerrina Reed of Homer PRIDE pose for a photo after the mayoral proclamation recognizing June as Pride Month on Tuesday, May 27 at the Cowles Council Chambers. (Photo courtesy of Winter Marshall-Allen)
City of Homer recognizes Pride Month, Juneteenth

Mayor Rachel Lord brought back the tradition of mayoral proclamations May 12.

File
Potential remains of missing Texas boaters discovered in sunken vessel

The vessel capsized 16 miles west of Homer in Kachemak Bay in August.

A sign for The Goods Sustainable Grocery is seen in Soldotna, Alaska, on Tuesday, May 20, 2025. (Jake Dye/Peninsula Clarion)
New Saturday Market to launch this summer at The Goods

The summer bazaar will feature craftspeople from around the central and southern Kenai Peninsula.

Council member Alex Douthit speaks during a meeting of the Kenai City Council in Kenai, Alaska, on Wednesday, June 5, 2024. (Jake Dye/Peninsula Clarion)
Kenai loosens restrictions on employee purchase of city property

Municipal officers like city council members are still prohibited from buying property.

Mount Spurr is seen from the Kenai Peninsula, Alaska, on May 11, 2025. (Peninsula Clarion file)
Likelihood of Spurr eruption continues to decline

Spurr is located about 61 miles away from Kenai and 117 miles away from Homer.

Anchor Point Chamber of Commerce President Dawson Slaughter (left) and Susie Myhill, co-owner of Anchor River Lodge and co-chair for the chamber’s sign committee, unveil the new “most westerly highway point” sign on Tuesday in Anchor Point. (Delcenia Cosman/Homer News)
Anchor Point chamber unveils new highway sign

The sign marks the “most westerly” highway point in North America.

Alaska State Troopers logo.
1 dead in Anchor River vehicle turnover

Alaska State Troopers were notified at 7:46 a.m. of a vehicle upside down in the Anchor River.

The barge, crane, and first pile of rock for the Kenai Bluff Stabilization Project is seen during a break in work at the bank of the Kenai River in Kenai, Alaska, on Tuesday, May 27, 2025. (Jake Dye/Peninsula Clarion)
Kenai bluff project underway

A roughly 5,000-foot-long berm will be constructed from the mouth of the Kenai River to near the city dock.

Most Read